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Here is the latest used car market report from Black Book, with the results of the market from the more conventional lanes. When looking at the overall change, both cars and trucks have larger average segment declines for the week. The cars declined only slightly more at -$37 this past week compared to the -$33 the previous week. Some of the individual segments with the largest declining amounts two weeks ago were some of the smaller declining levels this past week. One of the more often mentioned comments from the survey reports this past week was the interest in smaller, more fuel efficient cars. Ultimately, the smaller declining segments were the Entry Sporty Cars and the Entry Level Cars, both at -$22. The Upper Mid-size Cars finished at -$24, while the Entry Mid-size Cars finished at -$27. Gas prices did increase by $.01 for the week but notice gas is $.08 higher per gallon than one year ago.
The other primary comment coming from the auction lane reports is the interest in pickup trucks. As we finished the week the overall segment change of -$51 is the largest average segment decline since the week of November 16, 2012. Even with the larger overall decline, the string of at least one segment increasing remained intact as the Compact SUVs increased by $22. Something of interest within the trucks appeared as all truck segments, except for the Compact SUVs had a larger decline than the previous week. Is the market movement something out of the ordinary? I would say not so as we looked back at the change levels of one year ago the trucks changed at -$54 and the cars just slightly better one year ago at -$34.
A couple of variances from a year ago brought a significant larger number of adjustments during the week last year. Even though the average change is a larger decline this year, over the past four weeks the percent of adjustments that were increases was in the 26-28% range, while one year ago it amounted to only 11-18%.
The overall level of movement within the market of softening values should come as no surprise due to the continuing increase in new vehicle sales, thus bringing in more trades. We are also on the verge of another model year of vehicles coming into the market, thus some special deals and incentives gaining attention for the new, especially affecting the one and two year old used.